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Shiv Vani describes IT raid as 'routine' affair

Vol 18, PW 25 (13 Aug 15) People & Policy

Most companies would panic at the prospect of a raid by income tax authorities.

Not so Delhi-based Shiv Vani. Income tax officers who barged into the troubled company's Delhi office on July 29 at 10.15 am were lucky enough to run into joint managing director and promoter Padam Singhee, who seemed remarkably unfazed, says an eyewitness.

"The income tax guys saw Singhee first," we hear. "He was asked what is his role at the company? Singhee said he is an executive." Next, the income tax officers asked Singhee to hand over his mobile phone, which he did.

Singhee then disappeared into the toilet where he was seen making phone calls using a second mobile by an alert tax official who was monitoring the bathroom. "Singhee was confronted upon his return from the toilet," adds our source.

"He was asked why he didn't hand over his second phone?" Singhee respectfully replied he had obeyed their instruction to give them the phone in his hand! He explained he was calling his wife who would be happy to verify his story. Even though the raid lasted until 2:30am the following morning, Shiv Vani wasn't the target.

Income tax officials were carrying out a wider investigation into alleged tax evasion by Chhattisgarh-based Hira Group which partners Shiv Vani in a proposed 50-MW solar thermal power generation plant at Jaisalmer.

The income tax department raided 13 premises belonging to the Hira Group including the residences of the promoter Agarwal family. Shiv Vani owns 50% in Godawari Green Energy, a company set up to build and operate the project in Jaisalmer. "Shiv Vani has no executive role in Godawari Green Energy," we hear. "It's purely an investment." Shiv Vani's own problems haven't improved either, with creditors selling rigs and equipment to recover more than Rs3000cr ($481m). On July 31 lender IFCI issued a notice to auction a young three-year old 1000-hp Shiv Vani land rig on sale for as little as $1m or less. IFCI is also selling a 900-hp Shiv Vani land rig. Lenders led by ICICI Bank are planning to auction three more Shiv Vani rigs deployed with Petroleum Development Oman (PDO). "These three rigs are on offer to buyers for around $10m together," we hear. "Their contracts with PDO are ending next year but can be renewed for five years." Shiv Vani chairman Prem Singhee did not return calls or text messages when contacted.

The income tax department raided 13 premises belonging to the Hira Group including the residences of the promoter Agarwal family. Shiv Vani owns 50% in Godawari Green Energy, a company set up to build and operate the project in Jaisalmer. "Shiv Vani has no executive role in Godawari Green Energy," we hear. "It's purely an investment." Shiv Vani's own problems haven't improved either, with creditors selling rigs and equipment to recover more than Rs3000cr ($481m). On July 31 lender IFCI issued a notice to auction a young three-year old 1000-hp Shiv Vani land rig on sale for as little as $1m or less. IFCI is also selling a 900-hp Shiv Vani land rig. Lenders led by ICICI Bank are planning to auction three more Shiv Vani rigs deployed with Petroleum Development Oman (PDO). "These three rigs are on offer to buyers for around $10m together," we hear. "Their contracts with PDO are ending next year but can be renewed for five years." Shiv Vani chairman Prem Singhee did not return calls or text messages when contacted.